We often find that there are a lot of questions within the mortgage industry that crop up regularly with our Mortgage Advisors in Birmingham. So we have compiled a list to ease client worries:
You normally aren’t at risk of getting turned down for a mortgage if you have childcare costs involved, as most people who remortgage in Birmingham would tend to have had children after moving home in Birmingham for a bigger space. That being said, it is something that can be taken into consideration by the lender due to the costs being very expensive, so you may be granted a lower mortgage amount than other applicants who have the same income but do not have children.
Childcare costs are treated as a loan or credit commitment. Even without childcare costs being involved, parents may still be granted a lower mortgage than applicants who aren’t parents, as the lender’s affordability calculators automatically factor in some of the additional expense that often come with having kids.
Some lenders will also consider aspects like Child Benefits and other state Benefits. This can squeeze up the maximum mortgage allowable sometimes.
Nobody buys a house expecting divorce or separation to come along, but this sadly happens often. Because of this, the situation requires certain files and documents to go through a change, including name changes on a mortgage and the matter of whether a person is allowed two mortgages.
Names can be removed and a person can be allowed two mortgages but will require thorough Mortgage Advice in Birmingham. If you end up receiving maintenance this can sometimes be put towards your income for a mortgage.
This is a lot easier than most people probably think. Some lenders require you to have been in work continuously for a certain period of time whereas others are more lenient with this. You are even able to get a mortgage if you haven’t been employed with anyone else and are still in your first job.
If you are at the stage of starting a new job in the near future, you may still be eligible to obtain a mortgage if you have a signed contract and job offer letter. Although it’s important to remember gaps in employment may be a problem with lenders – probationary periods are usually okay.
Anti-Money Laundering precautions have become stricter in the years since the financial crash. When it comes to evidencing your deposit, all lenders will ask you where your money has come from – Solicitors and Estate Agents may also bring this up as a point to discuss.
This means that any large cash deposits which are deposited will be questioned and may lead to your application being rejected, something that can happen often for first-time buyers in Birmingham.
It is not unusual for some of your deposit to be a ‘Gifted Deposit’. The person who chooses to gift your deposit will need to confirm in writing that it is not a loan and is purely a gift.